Starbright manufactures children car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows:

Starbright manufactures children car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows:

 Factory utilities $80,000Factory foremen salaries $81,000Machinery setup costs $25,000Total manufacturing overhead $186,000

The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule:

  Overhead Cost  Allocation Base Estimated Activity Level  Factory Utilities  Direct labor hours  14,100  Factory foremen salaries  Machine hours  17,100  Setup costs  Number of production runs  114

During the current month, the following levels of activities were incurred:

 Car SeatsStrollersBaby SwingsTotal  Direct Labor Costs$ 55,900 $ 94,250 $ 33,150 $ 183,300   Direct Labor Hours4,300 7,250 2,550 14,100   Machine Hours5,200 9,000 2,900 17,100   Production Runs30 52 32 114   Units Produced1,500 2,500 870 4,870 

What are the setup costs allocated to Strollers during the current month?

$6,579.

$7,018.

$11,404.

Cannot be determined.